BHC to refund P286m to investors
Botswana Housing Corporation (BHC) is a non-governmental housing agency that helps in maintenance of leased houses for comfort and enjoyment as well as to restore the value of the house. The agency majors mainly on real estate investments where they build houses and rent them to people or they help in rent collection from the tenants on behalf of the landlords.
BHC is planning to repay its investors P286 Million on 10th December 2017 when the money will have matured. The company is planning to redeem their unsecured figure BHC0107 listed on the Botswana Stock Exchange (BSE). The bond is a fraction P2 billion figure by BHC which the organization uses to raise funding for its works.
The parastatal has gone for a year without increasing rent, and it gets money for new projects by disposing of their properties as well as borrowing on the capital market. Apart from the P286 million, the company also has P103 million which will mature in 2020. The high maintenance cost of old properties is higher than building new features; the agency has been recording profit for the past five years though lower than previous years.
An annual report released by BHC in 2016, said that the company was engaging different partners to cooperate and share the cost of infrastructure specifically the utility services provider. The parastatal was supposed to partner with the government to give them land since the land will hence benefit the country because there will be a reduction in the cost of the houses. The value of land only costs the parastatal 35% of their expenses.